The acquisition is said to bring two major medical technology companies together to increase access to care in the hospital, home, and alternate site settings
Health care company Baxter International has agreed to acquire Hillrom, a US-based medical technology company, in a deal worth around $12.4bn.
The consideration includes the assumption of Hillrom’s debt of $1.9bn.
Shareholders of the publicly-listed Hillrom are being offered $156 per share in cash by Baxter International.
Hillrom is engaged in empowering care teams with innovation, timely data, and actionable insights to advance connected care.
The company offers digital and connected care solutions along with collaboration tools. These include smart bed systems, patient monitoring, and diagnostic technologies among others.
Hillrom’s solutions and tools are said to help facilitate earlier diagnosis and treatment, apart from enabling optimisation of surgical efficiency and speeding up patient recovery. They are also claimed to help in simplifying clinical communication and taking care closer to home.
Hillrom president and CEO John Groetelaars said: “We are proud of the steps we have taken to transform Hillrom into a medical technology leader with an innovative portfolio of connected care solutions. Today’s milestone announcement represents a win-win for all stakeholders.
“Patients and caregivers will benefit from enhanced capabilities across the continuum of care, our shareholders will receive a significant and immediate premium for their investment, and our employees will benefit from being part of a larger, stronger company with accelerated growth opportunities.”
Baxter said that Hillrom has a largely complementary product portfolio and innovation pipeline to help it provide a broader range of medical products and services.
Its combination with Hillrom is expected to expedite the companies’ expansion into digital and connected care solutions.
Baxter chairman, president, and CEO José Almeida said: “Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and lower costs.
“Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve.”
The deal, which is subject to Hillrom’s shareholders’ approval, regulatory approvals, and other customary closing conditions, is likely to close by early 2022.